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ECB Says Collateral Eligibility Of Greek Govt Bonds To End On July 25

7/20/2012 10:40 AM ET

The marketable debt instruments issued or fully guaranteed by the Greek government will become ineligible for use as collateral next week, the European Central Bank said Friday.

"Due to the expiration on 25 July 2012 of the buy-back scheme for marketable debt instruments issued or fully guaranteed by the Hellenic Republic, these instruments will become for the time being ineligible for use as collateral in Eurosystem monetary policy operations," the bank said in a statement.

The Governing Council will assess their potential eligibility following the conclusion of the currently ongoing review, by the European Commission in liaison with the ECB and the IMF, of the progress made by Greece under the second adjustment programme, the bank said.

Liquidity needs may be addressed by the relevant national central bank in line with existing Eurosystem arrangements, it added.

by RTT Staff Writer

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